Bank of America says retail banking head Brian Moynihan will replace Ken Lewis as CEO on Jan. 1.
The bank's naming of an internal executive on Wednesday follows unsuccessful attempts to hire an outside star banker for the top job. Those negotiations were stymied by pay restrictions imposed by government pay czar Kenneth Feinberg.
Moynihan, 50, joined the Charlotte, N.C.-based bank as part of its 2004 purchase of FleetBoston Financial Corp. Over the past year he has served as BofA general counsel, head of global wealth management and consumer bank chief.
The new CEO faces some daunting tasks. He must juggle regulatory investigations into the bank's 2008 acquisition of Merrill Lynch while try to repair its relationship with regulators and members of Congress who have sharply criticized Lewis.